Companies stand to reap definite market advantages from pump rental, while at the same time reducing their capital costs. However, this is still not a common practice in South Africa, unlike more mature markets such as Europe and the United States. “The local market is often unsure about relying on the equipment and services of a third party,” Lee Vine, General Manager of Integrated Pump Rental, a sister company to Integrated Pump Technology, says.
“It is quite typical for South African companies to feel that owning their own pumps is the only route open to them. However, by aligning themselves with a knowledgeable and well-equipped rental company they will be able to quickly realise that, in many instances, rental provides them with market advantages while simultaneously reducing capital expenses,” says Vine. It is for this reason that Integrated Pump Rental has been launched.
Its rental fleet includes Grindex submersible drainage and dewatering pumps, diesel-driven pumps and accessories. In addition, value-add services such as dam cleaning and pontoons, pump flotation modules and pipe floats are available. All products used by Integrated Pump Rental are ISO 9001 certified. Full technical advice on the most suitable pump for specific applications is provided by its experienced team.
Vine points out that, for smaller companies, owning their own pumps is really not an option. This factor excludes them from bidding for contracts which call for the use of pumps. Access to a reliable pump rental source could be the all-important differentiator when tenders are awarded. In another instance, contractors may be awarded an entire contract but are forced to sub-contract the pumping portion of the contract, thus diluting their possible profit margin.
Two of the main advantages of renting, as opposed to buying pumps, are that that they are not added to the company’s balance sheet and are fully deductible as a company expense. Cash flow is also not adversely affected by renting pumps as there is no large capital outlay.
By entering into a rental agreement based on the projected time of rental, customers are able to ascertain upfront what their rental costs will be. In addition, there is no depreciation of equipment, since the contractor simply returns the pump to the rental company after the pumping portion of the contract is completed.
“Part of Integrated Pump Rental’s service level agreement (SLA) is the provision of a full maintenance service. This entails regular inspections of pumps before and during contracts to ensure that uptime is emphasised.
“Routine testing and ongoing maintenance of our pump fleet by our experienced team of technicians provides customers with the reassurance that pump availability remains high. Should a pump be taken out of service, it will be immediately replaced with a similar pump to ensure continuity of operation,” Vine explains.
Integrated Pump Rental takes complete responsibility for all maintenance of pumps on site and ensures that a complete maintenance record is kept, allowing them to determine when proactive, scheduled maintenance is required and when equipment reaches end of life. It recently commissioned a 90 kW test tank facility at its 1 200 m2 premises in Bartlett, Johannesburg, which includes a warehouse, rental division and full service and repair capability.
Integrated Pump Rental and Integrated Pump Technology are synergistic operations. “Some customers may wish to determine which pumps work best for them in various applications. By renting prior to purchasing a Grindex pump, they are able to familiarise themselves with each model and then decide which specific product is the best fit for them,” Vine points out.